Marcus (NYSE:MCS) Stock Falls 4.7% – Here’s Why

Marcus Corporation (The) (NYSE:MCS)’s share price fell 4.7% during mid-day trading on Thursday. The stock traded as low as $27.41 and last traded at $27.35. Approximately 12,660 shares changed hands during mid-day trading, a decline of 94% from the average session volume of 205,763 shares. The stock had previously closed at $28.70.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Barrington Research set a $33.00 price objective on shares of Marcus in a research report on Monday, August 3rd. B. Riley Financial cut Marcus from a “buy” rating to a “neutral” rating and raised their target price for the stock from $27.00 to $29.00 in a research note on Friday, July 31st. Zacks Research upgraded Marcus from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 30th. Wall Street Zen upgraded Marcus from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Finally, Weiss Ratings raised Marcus from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, Marcus currently has an average rating of “Moderate Buy” and an average price target of $32.25.

Marcus Price Performance

The stock has a market cap of $822.11 million, a PE ratio of 37.60 and a beta of 0.52. The business has a fifty day simple moving average of $28.35 and a two-hundred day simple moving average of $22.79. The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.34.

Marcus (NYSE:MCS) last announced its earnings results on Thursday, July 30th. The company reported $0.51 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.16. The firm had revenue of $231.74 million for the quarter, compared to analysts’ expectations of $217.72 million. Marcus had a net margin of 2.87% and a return on equity of 2.67%. Research analysts forecast that Marcus Corporation will post 0.81 earnings per share for the current year.

Marcus Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, August 25th were paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Tuesday, August 25th. This is a positive change from Marcus’s previous quarterly dividend of $0.08. Marcus’s dividend payout ratio (DPR) is presently 50.70%.

Insider Buying and Selling

In other Marcus news, Director Diane M. Gershowitz sold 50,000 shares of Marcus stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $27.61, for a total value of $1,380,500.00. Following the completion of the transaction, the director directly owned 125,617 shares of the company’s stock, valued at approximately $3,468,285.37. The trade was a 28.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 16.53% of the company’s stock.

Hedge Funds Weigh In On Marcus

A number of hedge funds have recently added to or reduced their stakes in MCS. WINTON GROUP Ltd bought a new position in shares of Marcus during the second quarter valued at $290,000. Susquehanna International Group LLP increased its holdings in Marcus by 183.1% in the 2nd quarter. Susquehanna International Group LLP now owns 47,094 shares of the company’s stock worth $1,105,000 after buying an additional 30,457 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in Marcus in the 2nd quarter worth about $6,481,000. Bank of America Corp DE lifted its stake in Marcus by 1.8% during the 1st quarter. Bank of America Corp DE now owns 89,332 shares of the company’s stock valued at $1,534,000 after acquiring an additional 1,556 shares during the period. Finally, Empowered Funds LLC boosted its holdings in shares of Marcus by 2.8% during the 1st quarter. Empowered Funds LLC now owns 181,793 shares of the company’s stock valued at $3,121,000 after acquiring an additional 5,023 shares during the last quarter. 81.57% of the stock is currently owned by hedge funds and other institutional investors.

About Marcus

Marcus Corporation is a diversified hospitality and entertainment company headquartered in Milwaukee, Wisconsin. Founded in 1935, the company operates through two primary business segments: movie theatres and hotels and resorts.

Through Marcus Theatres, the company owns and operates cinemas under the Marcus Theatres and Movie Tavern brands, offering first-run films, premium viewing experiences, food and beverage service, and other entertainment amenities. Its theatres are located primarily in the Midwestern United States, with additional locations in other regions.

Through Marcus Hotels & Resorts, the company owns, manages, or develops hotels, resorts, and related hospitality properties.